Changes are in the air for India’s logistics industry which is gradually becoming more organized and technology-driven. The $200 billion supply chain backbone of India needs further transformation in terms of infrastructure and skill development for it to contribute to the country’s economic growth.
The establishment of Multi-Modal Logistic Parks (MMLP) will be a vital initial step in India’s logistics transformation. The Bharatmala project, which aims to build 83,677 km of highways by 2024 to ensure smooth and uninterrupted linkages, would see 35 Multi-Modal Logistic Parks (MMLP) spring up across the country.
Talking about the MMLPs, Union Road Transport and Highways Minister Nitin Gadkari said, “These MMLP will give a big boost to our economy and exports.”
As the scheme aims to boost the logistics export in the country, it should positively impact the employment generation and skill development in the logistics sector.
- How will the establishment of MMLPs impact the job creation in the logistics industry which currently employs 22 million people?
- Will the skill development initiatives by the government and industry leaders complement the MMLPs by bridging the skill gap in the industry?
Will the establishment of 35 MMLPs boost skill development and employment generation in the logistics industry?
The development of these 35 MMLPs will cost Rs. 2 lakh crores and will aid private enterprises in lowering their warehousing costs. Suman Prasad Singh, MoRT&H Joint Secretary (Logistics), revealed that construction on one of the 35 MMLPs has already been finished in the northeastern region. A Memorandum of Understanding (MoU) has also been signed for the establishment of another MMLP in Chennai and the third MMLP is coming up in Sindhi-Wardha.
The MMLPs are expected to,
- Create direct jobs at the local level and thus bring economic stability to the life of people
- Also, create indirect job opportunities for the people by promoting the growth of other types of businesses locally that are not directly related to the MMLPs
- Provide opportunities for integration of IT to reduce costs incurred, world-class transportation network and world-class storage and warehousing facilities
Will the skill development initiatives by the government and industry leaders complement the MMLPs by bridging the skill gap in the industry?
The logistics industry in India employs around 22 million people, which is expected to grow in the next couple of years. However, there is a severe scarcity of trained workers who are well-versed in industry-specific skills.
As the establishment of MMLPs is expected to create direct and indirect job opportunities for youth, state governments, such as the government of MP, and other major players in the logistics sector, have launched a number of skill development initiatives that should complement MMLPs by strengthening the industry’s skilling ecosystem.
Also read: How will the upgradation of 150 ITIs boost the employability of Karnataka’s youth? https://www.nationalskillsnetwork.in/how-will-the-upgradation-of-150-itis-boost-the-employability-of-karnatakas-youth/
Here are two of the recent skill development initiatives which aim to bridge the skill gap in the logistics sector,
India’s first Centre of Excellence in Logistics
At Devi Ahilya Vishwavidyalaya, India’s first Centre of Excellence in Logistics would be established, with 5,000 professionals taught annually. The Logistics Sector Skill Council will partner with the centre to administer it.
Supply Chain Operations Academy (SCOA) by Flipkart
Flipkart’s Supply Chain Operations Academy (SCOA) will give appropriate industry training and information to help the country develop a pool of experienced supply chain operations personnel. This will help to close the skill gap and create job opportunities in the country’s growing supply chain industry.
“India can unlock its potential through large-scale skilling and upskilling initiatives to reap the benefits of its demographic dividend,” said Hemant Badri, senior vice president and head of the supply chain at Flipkart.
The success of the MMLPs and the implementation of skill development initiatives in the logistics industry will necessitate collaboration and strategic insight from all stakeholders. The initiative has the potential to dramatically transform India’s logistics business if it is executed correctly.
We have simply analysed the trends in order to keep our readers informed about the evolving skills industry in India. Please contact the people, organizations or industry bodies mentioned in the article if you want to learn more about the news.